Supplemental Insurance Providers

2014 Medicare and Medigap Updates

Supplemental Insurance Providers

When it comes to Medical health insurance, Medicare is a household name. All people who work under the Social Security system know about the Medicare programs which provide medical insurance coverage once one reaches retirement age, or the age of 65.

Medicare in all its four parts is geared towards covering all the major health expenses that one may suffer from in their old age. However, there is some concern as Medicare does not cover some important medical services that some Medicare candidates may eventually need. For instance, one may notice that long term care that exceeds 100 days is not provided under any Medicare coverage plan. Thus, there is a great need for supplemental insurance providers to cover these additional, yet very important costs. The main supplemental insurance providers are often called Medigap companies, though most carry other types of insurance.

From the basic definition of supplemental insurance providers, Medigap insurers offer a number of plans, each with their own premium rates and benefits. These benefits target the areas not covered in the Medicare plans. While the premiums and benefits offered for each plan by these supplemental insurance providers differ, the plans in reality are all the same and standardized by Medicare. Thus, one should not be led to believe that the plan is unique to that particular insurer.

Basically, there are 10 Medigap plans in place over all the states. However, one may find a situation whereby the plans exceed this number. All the plans are labeled by letters of the alphabet with each having different premiums and benefits.

When it comes to plan premiums, supplemental insurance providers utilize three different policies to determine the premium rate on the particular plan. These include the attained-age policy, the issue-age policy and the community policy. It is worth noting that while some of the policies may have low premium rates at the beginning such as the issue-age policy, the premiums are increased every year as one ages. However, others like the community policy do not change regardless of one’s changing age.

One should know that supplemental insurance providers also revise their plans each year so as to take into account the yearly inflation rate. This is calculated into the plan and may result in increased premium rates. Thus, one may have to check their plan each year so as to ensure that it is still relevant to their needs in terms of cost and benefits.

When searching for reliable supplemental insurance providers, one should check the Medicare website for a list of accredited Medigap insurers. Secondly, one should perform more research as to which plans the said insurance provider offers and their related costs and benefits. Finally, unless they are buying over in internet, one should pay a physical visit to the insurance provider if they have any questions about their proposed plan.

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